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    APPLICATION OF MIS

    IN APPAREL INDUSTRY

    Submitted By-Mohit Pana!DFT-III

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    Ab"t!a#t$ The paper presents an attempt for analysis of the theory in the sphere of theManagement Information System (MIS). The information needs of the various manageriallevelsare pointed out and the stages in the development of MIS are defined. The growingimportance ofthe application of MIS in tailoring industry is shown.%ey o!d"$ Information Technology (IT)& Management Information System (MIS),tailoring industryINTRODUCTIONWe are living in a time of great change and working in an Information ge. Managers have toassimilate masses of data, convert that data into information, form conclusions a!out that

    information and make decisions leading to the achievement of !usiness o!"ectives. #or anorganisation, information is as important resource as money, machinery and manpower. It isessential for the survival of the enterprise.$efore the widespread use of computers, many organisations found difficulties in gathering,storing, organising and distri!uting large amounts of data and information. %evelopments incomputer technology made possi!le for managers to select the information they re&uire, intheform !est suited for their needs and in time they want. This information must !e current and inmany cases is needed !y many people at the same time. So it has to !e accurate, concise,timely, complete, well presented and stora!le. Most firms nowadays depend on IT. $utpersonalcomputers ('s) themselves will not improve organisational productivity this only comesa!out if

    they are used efficiently and effectively.The information system is the mechanism to ensure that information is availa!le to themanagersin the form they want it and when they need it. It is designed to support their work throughproviding relevant information for their decision*making. omputer systems can clearly aidorganisations in the processing of data into accurate, well presented, up*to*date andcosteffectiveinformation. Weather that information is also concise, relevant, timely and complete willdepend largely on the capa!ilities of the people involved in its processing and selection.De'inin( the te!m"Technology is a general term for the processes !y which human !eings fashion tools andmachines to increase their control and understanding of the material environment. The term isderived from the +reek words tekhne, which refers to an art or craft, and logia, meaning an

    areaof study thus technology means, the study, or the science of crafting.

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    Information technology (IT) and computers can !e viewed as tools ena!ling the rapid capture,manipulation, storage and communication of information. They may help the managers toadministrate and control, to make decisions !ut not to lead. IT is a term that covers thehardwareand software used for storing, processing or communicating information. It is through IT thatcompanies can define, gather, store, manipulate, and communicate data to smooth the flow of

    information.lthough the terms data and information tend to !e used interchangea!ly, there is a realdistinction !etween the two concepts. %ata are row, unanaly-ed num!ers and facts a!outevents.Information, in contrast, results when data are organised and analy-ed in some meaningfulway.Strategy concerning computer technology application may !e viewed as IS strategy and ITstrategy. IS strategy is concerned with ascertaining an organisations demand for applicationsand overall development of organisation systems, whereas IT strategy will concern itself withhowthose demands are actually satisfied ($arnatt, /001). In other words, companys re&uirementwilldetermine the means sought to fulfill their technological solution. The informational strategy

    willprovide the foundation for the IT strategy. In a good company, IT strategy should !e linked tothe!usiness strategy.The term management information system (MIS) made its first appearance in 2.S. navyreport onthe use of computers to construct a single integrated system to manage all navy resources.The MIS idea spread rapidly throughout the administrative systems community, encouraged!y aspate of su!se&uent reports and conferences sponsored !y the merican Managementssociation. MIS was an 3information3 system !ecause it informed managers, not !ecause itwasfull of information in technical sense, though the distinction soon !lurred as the idea of MIS

    spread.MIS is every system, which provides information for the managerial activities in anorganisation.#or a!out a decade, from its introduction in /040 to the end of the /056s, this very !roaddefinition of MIS spread rapidly and was endorsed !y industrial corporations, consultants,academic researchers, management writers, and computer manufacturers.The term 7management information system8 (MIS) is synonymous with computer*!asedsystems.2sed !roadly, it is seen as the system satisfying all the information needs of managers. MISisthe study of providing information to people who make choices a!out the disposition ofvalua!leresources in a timely, accurate, and complete manner at a minimum of cognitive and

    economiccost for ac&uisition, processing, storage, and retrieval. nother definition emphasi-es the usetowhich the information is put, rather than the way it is produced7 system to convert data from internal and e9ternal sources into information andcommunicatethat information in an appropriate form, to managers at all levels in all functions to ena!lethem tomake timely and effective decisions for planning, directing and controlling the activities forwhichthey are responsi!le.8($ee and $ee, /000) :thers, however, give it more limited scope. Theyseeit as a system collecting and analy-ing data and producing reports. Its purpose is to help

    managers to solve structured pro!lems. $ut it should also fulfill a num!er of other purposes

    ;

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    and internally this is the main function of data !ase

    ;

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    levels, as well as the routine transaction*processing needs of the total organisation. #ore9ample,as shown in ta!le /, the information sources for operation control are found largely within theorganisation, while the information sources for strategic planning tend to !e outside theorganisation. ). Bowever, the value of information is offset !y the cognitive and economiccosts of

    ac&uiring, processing, storing, and retrieving it.To survive, every organisation collect information, communicate it internally and process it sothatmanagers can make decisions &uickly and effectively in pursuit of organi-ational o!"ectives inachanging, competitive environment. The IS is the nervous system witch allows anorganisation torespond to opportunities and avoid threats. It is widely acknowledged that firms with the !estandmost effective ISs are those that have clear and well thought out IS strategy.The speed at witch companies gear up to the new market conditions and maintain aresponsi!leMIS will play a ma"or role in determining their success or failure in this changing environment.

    Itcan give a company sustaina!le competitive advantage !y improving production, sales andadministration performance.The a!ility to use computers creatively to collect, organise, distri!ute, and control informationisspelling the difference !etween success and mediocrity in industries ranging from !anking towomens clothing. omputers are changing the way the !usiness is done.lmost all !usiness organisations normally have some kind of information system formanagement. ccounting rules, stock control and market monitoring systems are the mosttraditional and common e9amples. The power of technology has transformed the role ofinformation in !usiness firm. Cow information has !ecome recogni-ed as the life!lood of anorganisation (#igure D). Without information, the modern company is dead. ('apows,/00E)

    %espite the enormous investment in IT during recent years, demonstrating the effects of suchinvestment on organisational performance has proven e9tremely difficult. Bowever, it ispossi!le,indeed likely, that in many instances IT has the potential to provide important !enefits withinthesame year the investment is made. In any event, research reflecting relationships !etween ITinvestment and organisational performance and productivity might !e more convincing if itwere!ased on IT investment in !oth current and earlier periods. There are huge variations acrossorganisations, some have spent vast sums on IT with little !enefit, while others have spentsimilaramounts with tremendous success.3 They hold that the greatest !enefits of IT appear to !ereali-ed !y organisations when IT investment is coupled with other complementary

    investmentssuch as organisational reengineering, restructuring, and redesign.Sta(e" in the de*e)o+ment o' Mana(ement In'o!mation Sy"tem":rganisations have always had some kind of management information systems, even if it wasnotrecogni-ed as such. %evelopments in the use of the new technology have gone throughseveralstages.Stage / ?%' When computers were first introduced into organisations, they were usedmainlyto process data for a few !usiness functions A usually accounting and !illing. omputers werelocated in electronic data processing (?%') departments, !ecause of the speciali-ed skillsneeded to operate the e9tensive and comple9 system.

    Stage D MIS The growth of ?%' departments spurred managers to focus more on planningtheir organisations information systems. s the ?%' departments function e9panded !eyond

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    routine processing of masses of standardised data, they !egan to !e called managementinformation system (MIS) departments. #igure F is a diagram of MIS (Groenke, /0E>). MISusesdata created mainly in the ?%' departments and it can !e developed only when there alreadye9ists such department. It does not make any changes in these data. MIS could o!taininformation from internal and e9ternal sources.

    Stage F %%S =ater on, when remote terminals were introduced, more than one department!egan to use the same system. t this stage the MIS has grown !eyond a data processingroleand included the provision of a num!er of decision support systems (%SSs). While the MIScontrols routine operations using data processing methods, the %SS is seen as supportingdecisions on 7less routine issues8 and solving 7semistructured8 pro!lems.Stage 1 HTI#II= ICT?==I+?C? and ?'?HT SJST?MS. :ne of the fastest growingareas of information technology, artificial intelligence uses the computer to simulate some ofthecharacteristics of human thought. The term artificial intelligence (I) means the simulation ofhuman thought process in order to select the !est mode of !ehavior, e. g. taking a decision orresponding to a situation. ?9pert systems are a ma"or application of I. They act like a human7e9pert8 in analy-ing unstructured situations. ?9pert systems are also called 7knowledge*

    !ased8systems since they are !uilt on a framework of known facts and responses to situations.It is !elieved that we are moving rapidly from industrial*!ased society to an information !asedone. The application of computer technology to management information anddecision support systems has certainly had an effect on how managers perform their tasksand on how organisations !ehave.Im+a#t o' o!(ani"ationa) 'a#to!" on in'o!mation "y"tem"Information systems are seen as a strategic resource within the organisation that is, theyhave an important impact on key operations which determine the livelihood of theorgani-ation.When the organisation is a small, simple set*up the need for sophisticated information can !evirtually non*e9istent. In a small firm with a manager, a small num!er of staff and customers,that

    manager will pro!a!ly know every aspect of the !usiness in detail and will pro!a!ly keephisKherown records of useful information in hisKher informal information system. The situation!ecomestrickier if within this one !usiness there are two different types of activity. The manager might!egin to feel the need for some formal system for managing information in order to allowhimKherto prioriti-e the use of time and concentrate on the important indicators of !usiness success. great num!er of small and middle enterprises (SM?) seemed to lag technologically from the!igger firms and might !e e9cluded from the e*markets (figure 1). This may have a negativeinfluence on their future development. The managers of SM? pro!a!ly think that the !usinessprocesses in their firms are not such complicated and do not re&uire the use of IT (:fficial'u!lication of the ?, D666).

    It is o!vious that the need for management information increases with the comple9ity of theorganisation, the comple9ity of the tasks carried out and the rate of change in theenvironment ofthe organisation. ompanies where responsi!ilities are clearly defined and understood willfind itmuch easier to set up effective information systems, as will those where the structure andcultureare not in conflict. $y structure is meant the way in which an organisation is physicallyarranged indepartments andKor locations. ulture is a term for the set of traditional and ha!itual ways ofthinking, feeling, reacting to opportunities and pro!lems that confront an organisation ($eeL$ee,/000). $oth structure and culture might influence the way information flows through the

    organisation.The #han(in( natu!e o' o!(ani"ation" and o!,

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    The development of the IT offers enormous opportunities to improve the way in whichorganisations work. Bowever, the introduction of a new technology does not leadautomatically toimproved performance. It might result in greater "o! insecurity and might cause fear from theprocess of adapting the workforce to the re&uirements and pressures of implementation ofmodern MIS. :n the other hand, MIS made it easier to store, process and access information

    than ever !efore. ?mployment might !e also affected through the changes in demand formoreand !roader skills and for fewer unskilled people. More than ever, organisations seamed to !edependent on highly skilled and motivated workforce.To !enefit from their investment in new IT and MIS, firms pro!a!ly need to address not onlythetechnological environment within they operate, !ut also their relationships with suppliers,customers and other trading partners, systems of productions, the physical configuration ofmachines, and the development of la!or and skills. :rganisational change in MIS shouldtherefore ideally consist of a set of closely*related developments in the structure of firms, inproduction and work processes, in la!or and in skill re&uirements, and in technologicalsystems.ommunication researchers have for many years e9plored how ver!al and nonver!al

    communication patterns affect a host of phenomena ranging from persuasion to productivity.sthe glo!al economy and online communities collide, more and more organisations have cometodepend on colla!orative technology to support distri!uted teamwork.#le9i!le working arrangements, such as part*time work, working at or from home,selfemploymentand fle9i!le employment contracts might !ecome increasingly prominent in the shift towardstheintroduction of information society. The implementation of modern MIS might improve thefirmscompetitiveness and make them fle9i!le, more responsi!le and more profita!le throughdecreasing the cost and creating possi!ilities for accessing new markets and customers.

    Com+ute!" and MIS in tai)o!in( indu"t!yomputers have !een used in the clothing industry since the earliest introduction of IT. Inthosedays only the very large tailoring companies had the resource to take up this technology.Theyused them mainly for !usiness data processing. %uring this decade, the te9tile industry hasprogressively taken up computerisation. The application of computers is wide rangingcoveringalmost all activities necessary to run a te9tile !usiness accounting and transactionprocessing,sales and marketing, production planning, computer*aided management, real*timemanagementetc. :ver time the nature of computer systems in their implementation has taken several

    formsstandalone applications !ased on one computer an integrated centrali-ed system where onelarge computer handles a range of applications applications catered for !y having ones dataprocessing distri!uted over a network of computers. lot of clothing companies continued to invest not only in very latest production technology,!utalso in design technology and computer systems. They use computers complete with Intranetsothat a lot of people working on 's throughout the group could access and work with data onthemain computer. MIS in clothing companies should include the control of the stock, processingofeach individual order, accounting etc. Most of the tailoring enterprises have a we! site and in

    thisway e*commerce is widening. ?commerce offers a uni&ue opportunity for economic growth, to

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    improve industrys competitiveness and to stimulate investment in innovation and the creationofnew "o!s.ommercial communications are an essential part of most electronic commerce services.?lectronic commerce is glo!al and re&uires increased international coordination. Itsimplementation opens not only new markets, !ut it also changes the way in which !usiness is

    made. ?*commerce over the World Wide We! is growing at an astronomical pace. Many ofthetop e*commerce sites report revenue growth e9ceeding /66 percent per year. ?lectroniccommerce will allow the companies of tailoring industry to compete on the worlds scene,regardless their geographic situation. ?urope is late in developing andimplementing of the modern IT (figure 4). small num!er of companies use all possi!ilities ofIT.(:fficial pu!lications of the ?, D666)The effect of the use of modern IT might have many fold higher efficiency, increasedproductivity,optimi-ed processes, enhanced &uality control and thus improved products !etter designlowercost and shorter lead times.

    The development of the IT and the process of glo!ali-ation usually has direct influence on thela!or market and leads to the appearance of new fle9i!le tailoring companies. Theimplementation of modern MIS improves the production process in the enterprise andchangesthe relationship !etween managers and their su!ordinate.Con#)u"ionomputers and MISs are one of the important organisational resources for the firms ofclothingindustry. The tailoring companies should spend a huge amount of money for !uying,developmentand maintenance of such systems. great num!er of enterprises could not operate properlyandsuccessfully without the implementation of MISs in the new changing environment. The

    modernIT will !ecome the main force determining the pattern of the D/*st century and giving greatopportunities in all spheres of our life. MISs have great contri!ution to increasedcompetitivenessand effectiveness of managers in decision*making process and solving of different pro!lemswhich appeared in managing an organisation.